Tango Therapeutics, Inc. (TNGX)·Q2 2025 Earnings Summary

Executive Summary

• Q2 2025 total revenue was $3.18M, down sharply year over year from $19.88M due to the absence of prior-year license revenue ($12.1M in Q2 2024); collaboration revenue fell to $3.18M from $7.78M as research costs under the Gilead collaboration decreased .
• Net loss widened year over year to $38.85M and diluted EPS was -$0.35 vs -$0.24 in Q2 2024; operating expenses declined to $44.15M from $49.43M on reduced spend for discontinued programs, partially offset by higher investment in TNG462, TNG456 and TNG961 .
• Cash, cash equivalents and marketable securities totaled $180.8M, with runway expected to fund operations into Q1 2027 (maintained from Q1) .
• Corporate development: the Gilead collaboration research term was truncated from seven to five years, with a one-time recognition of $53.8M unrecognized deferred revenue in Q3 2025—a near‑term revenue catalyst and potential headline driver for the stock .
• The company did not hold a Q2 earnings call, focusing investor communication through press releases; upcoming TNG462 monotherapy and TNG260 data in 2H 2025 are key catalysts .

What Went Well and What Went Wrong

What Went Well

• TNG462 monotherapy continues to show a “best-in-class” tolerability and safety profile at 250 mg QD; management reiterated plans to present efficacy/tolerability data in 2H 2025 to inform a registrational study in pancreatic cancer next year (“has the potential to be a best-in-class PRMT5 inhibitor”) .
• Clinical execution: first patient dosed in the TNG462 combination trial with Revolution Medicines’ RAS(ON) inhibitors (daraxonrasib and zoldonrasib), supported by strong preclinical synergy signals; “deep, durable tumor responses” in preclinical models and conviction that TNG462 could play a major role in MTAP‑deleted cancers .
• Pipeline breadth: TNG456 Phase 1/2 dose escalation initiated in May for glioblastoma (MTAP‑deleted solid tumors); prior Fast Track and Orphan Drug designations in the PRMT5 franchise underpin regulatory momentum .

Quoted management:

• “TNG462 has the potential to be a best-in-class PRMT5 inhibitor for the treatment of MTAP-del pancreatic and lung cancers, and we look forward to sharing data that support our conviction later this year.” — Barbara Weber, M.D., President & CEO .
• “The potential of these combinations further strengthens our conviction that TNG462 may play a major role in changing the treatment paradigm for patients with MTAP-deleted cancers.” — Adam Crystal, M.D., Ph.D., President, R&D .

What Went Wrong

• Revenue compression: total revenue fell to $3.18M from $19.88M yoy, driven by loss of the $12.1M prior-year license revenue and lower collaboration revenue due to reduced research costs under the collaboration .
• Loss profile widened yoy: net loss grew to $38.85M vs $25.55M as revenue declined; “Other income, net” was lower ($2.15M vs $4.07M), partially offsetting the yoy operating expense reduction .
• Investor engagement: no Q2 conference call held, limiting real-time Q&A or clarifications on pipeline timelines and revenue recognition mechanics .

Financial Results

Year-over-Year Comparison (Q2 2024 → Q2 2025)

Notes:

• Q2 2024 total revenue reflected a $12.1M license to Gilead; Q2 2025 had no license revenue .

Sequential Comparison (Q1 2025 → Q2 2025)

KPIs

Guidance Changes

Earnings Call Themes & Trends

Note: The company did not host a Q2 2025 earnings call . Themes tracked from Q4 2024 and Q1 2025 updates into Q2 2025:

Management Commentary

• “We plan to present efficacy and tolerability data from the ongoing TNG462 monotherapy Phase 1/2 study that will inform the initiation of a registrational study in pancreatic cancer next year and our development strategy in lung cancer.” — Barbara Weber, M.D., President & CEO .
• “Preclinical data support the potential for these combinations to be an important new therapy for RAS-mut, MTAP-del cancers, and reinforce our belief that TNG462 has the potential to play a major role in treating patients with MTAP-del cancers.” — Barbara Weber, M.D. .
• “Single agent clinical data to date have demonstrated these molecules to be well-tolerated and active in pancreatic cancer and lung cancer, supporting the potential for these combinations to become transformative therapies.” — Adam Crystal, M.D., Ph.D., President, R&D .

Q&A Highlights

• No Q2 earnings call or Q&A was held; the company explicitly stated it did not intend to hold a conference call for Q2 2025 .
• Any clarifications on TNG462 data timing, registrational plans, and deferred revenue mechanics were provided via press releases and the 8-K .

Estimates Context

• Wall Street consensus estimates for Q2 2025 EPS and revenue via S&P Global were unavailable at the time of retrieval; the dataset returned no values for TNGX for Q2 2025 (consensus mean and number of estimates not available). Values retrieved from S&P Global.*

Key Takeaways for Investors

• Expect a headline revenue spike in Q3 2025 from the $53.8M deferred revenue recognition tied to the Gilead collaboration change; this is non-recurring but likely to drive near-term sentiment. Focus on underlying collaboration revenue trends thereafter .
• The core near-term value driver is TNG462: monotherapy efficacy/tolerability data in 2H 2025 to underpin a registrational path in pancreatic cancer and shape lung strategy; strong tolerability at 250 mg QD is a competitive angle .
• Combination strategy has de-risked operationally with dosing initiation alongside Revolution Medicines’ RAS(ON) inhibitors; synergy potential in RAS-mut, MTAP-del tumors could expand addressable opportunity if clinical benefit materializes .
• Loss profile widened on revenue decline vs prior year due to absent license revenue; however, operating discipline is evident with yoy OpEx down, and cash runway maintained into Q1 2027, mitigating financing risk in the near term .
• No earnings call limits live disclosure cadence; monitor upcoming conference appearances and 2H data drops for incremental read-throughs to registrational intent and commercial runway .
• Regulatory tailwinds (ODD for TNG462; FTD for TNG456, including combination with abemaciclib) position the PRMT5 franchise favorably if clinical efficacy is substantiated .
• Trading implication: Q3’s revenue recognition may create an optical beat; the more durable driver will be TNG462 monotherapy data quality and any early signals from combination cohorts. Position sizing should reflect binary data risk in 2H 2025 against an extended cash runway .